SENATE BILL 185

56th legislature - STATE OF NEW MEXICO - first session, 2023

INTRODUCED BY

Bill Tallman

 

 

 

 

 

AN ACT

RELATING TO PRIVATE SECTOR RETIREMENT; ATTACHING THE NEW MEXICO WORK AND SAVE BOARD TO THE WORKFORCE SOLUTIONS DEPARTMENT FOR ADMINISTRATIVE PURPOSES ONLY; TRANSFERRING NEW MEXICO WORK AND SAVE BOARD PERSONNEL AND PROPERTY TO THE WORKFORCE SOLUTIONS DEPARTMENT; RESTRUCTURING THE MEMBERSHIP OF THE NEW MEXICO WORK AND SAVE BOARD; MAKING AN APPROPRIATION.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 58-33-2 NMSA 1978 (being Laws 2020, Chapter 7, Section 2, as amended) is amended to read:

     "58-33-2. DEFINITIONS.--As used in the New Mexico Work and Save Act:

          A. "board" means the New Mexico work and save board;

          B. "board member" means a member of the board;

          C. "covered employee" means a person who is at least eighteen years of age and who is employed by a covered employer, either full time or part time, or a person who is self-employed as a sole proprietor or an independent contractor; provided that "covered employee" does not include an employee:

                (1) covered under the federal Railway Labor Act;

                (2) on whose behalf an employer makes contributions to a multi-employer pension trust fund pursuant to the federal Taft-Hartley Act; or

                (3) of federal, state or local governments or any agency, department, board, commission, institution or instrumentality of those governments;

          D. "covered employer" means a person engaged in a business, industry, profession, trade, nonprofit or other enterprise with its primary place of business physically located in New Mexico, but does not include a federal, state or local government or any agency, department, board, commission, institution or instrumentality of those governments;

          E. "default investment option" means a Roth individual retirement account with a target date fund investment and a default contribution rate established by the board;

          F. "department" means the workforce solutions department;

          [F.] G. "financial institution" means a duly licensed bank, savings and loan association, credit union, broker-dealer, asset manager, insurance company, mutual fund or other financial entity;

          [G.] H. "financial service provider" means a financial or investment service provider that, if approved by the board as meeting the eligibility criteria, may administer and maintain one or more program participant investment accounts or one or more marketplace participant accounts for which the provider is a fiduciary;

          [H.] I. "Internal Revenue Code" means the United States Internal Revenue Code of 1986, as amended;

          [I.] J. "IRA" means an individual retirement account that conforms to the requirements of Section 408(a) of the Internal Revenue Code;

          [J.] K. "marketplace participant" means a covered employer that establishes a plan through the New Mexico retirement plan marketplace or a covered employee who establishes an investment account through the New Mexico retirement plan marketplace;

          [K.] L. "New Mexico retirement plan marketplace" means a board-approved web-based marketplace that facilitates access to retirement savings plans for private sector and nonprofit employers and employees, including multiple-employer plans;

          [L.] M. "New Mexico work and save IRA program" means the retirement savings program, designed and implemented by the board, that facilitates payroll deductions of program participants in individual retirement accounts without any contributions from covered employers;

          [M.] N. "New Mexico work and save platform" means the online digital service designed and implemented by the board to facilitate interaction among covered employers, covered employees, program participants, financial service providers and other users via the internet;

          [N.] O. "participating employer" means a covered employer that provides payroll deductions for individual retirement accounts through the New Mexico work and save IRA program but that does not contribute to those accounts;

          [O.] P. "program participant" means a covered employee who is contributing to an individual retirement account through the New Mexico work and save IRA program or has an individual retirement account balance through the New Mexico work and save IRA program;

          [P.] Q. "Roth individual retirement account" means a voluntary payroll deduction Roth individual retirement account that conforms to the requirements of Section 408A of the Internal Revenue Code; and

          [Q.] R. "total fees and expenses" means all fees, costs and expenses, including administrative expenses, investment expenses of the New Mexico work and save IRA program, investment advice expenses, accounting costs, actuarial costs, legal costs, marketing expenses, education expenses, trading costs, insurance annuitization costs and other operating expenses."

     SECTION 2. Section 58-33-3 NMSA 1978 (being Laws 2020, Chapter 7, Section 3) is amended to read:

     "58-33-3. BOARD CREATED--ORGANIZATION.--

          A. The "New Mexico work and save board" is created and is administratively attached to the [office of the state treasurer] department. The [office of the state treasurer] department shall provide administrative support for the board in carrying out its duties pursuant to the New Mexico Work and Save Act.

          B. The board consists of the following voting members:

                (1) [two members appointed by the state treasurer as follows:

                     (a) one member who has skill, knowledge and experience in the field of retirement saving and investments; and

                     (b) one member who has skill, knowledge and experience in retirement investment products or retirement plan designs] on and after May 20, 2024, one member appointed by the secretary of economic development who has skills, knowledge and experience in workplace retirement investment products or retirement plan designs;

                (2) [three] two members appointed by the governor as follows:

                     (a) one member who is a representative of an association representing employees; and

                     [(b) one member who is a representative of small businesses; and

                     (c) one member who is a representative of the interests of program participants]

                     (b) on and after May 20, 2026, one member who has skills, knowledge and experience in workplace retirement investment products or retirement plan designs;

                (3) [two] three members appointed by the speaker of the house of representatives as follows:

                     (a) one member who is a representative of the interests of program participants; [and]

                     (b) one member who has skill, knowledge and experience in the field of retirement saving and investments; and

                     (c) on and after May 20, 2024, one member who is a representative of small businesses; and

                (4) [two] three members appointed by the president pro tempore of the senate as follows:

                     (a) one member who is a representative of the interests of program participants; [and]

                     (b) one member who has skill, knowledge and experience in the field of retirement saving and investments; and

                     (c) on and after May 20, 2026, one member who is a representative of small businesses.

          C. A majority of the board constitutes a quorum. Action may be taken by the board upon an affirmative vote of the majority of members present at the meeting at which a quorum is present. A vacancy in the membership of the board does not impair the right of a quorum to exercise the powers and duties of the board.

          D. [The appointing authorities shall appoint the first members of the board for staggered terms so that the state treasurer appoints one member for two years and one member for four years, the governor appoints two members for two years and one member for four years, the speaker of the house of representatives appoints one member for two years and one member for four years and the president pro tempore of the senate appoints one member for two years and one member for four years.] Members appointed and serving terms on the board on the effective date of this 2023 act shall continue to serve the remainder of their terms. Thereafter, members of the board shall be appointed for four-year terms by the appointing authorities as provided in Subsection B of this section.

          E. A board member shall be eligible for reappointment, provided that a board member shall not serve more than three full terms, consecutive or otherwise. Members shall serve until their successors have been appointed. If there is a vacancy for any reason, the appointing authority shall appoint a qualified person to fill the unexpired term. Prior to the expiration of a board member's term, the executive director shall contact the appointing authority and request appointment for the next term of a qualified individual as provided in Subsection B of this section.

          F. The appointing authority may remove a member of the board that it has appointed for neglect of a duty required by law, for incompetency, for malfeasance or for unprofessional conduct.

          G. Board members shall receive no salary for their service as board members but shall receive per diem and mileage pursuant to the Per Diem and Mileage Act."

     SECTION 3. TEMPORARY PROVISION--TRANSFER OF FUNCTIONS, PERSONNEL, MONEY, APPROPRIATIONS, PROPERTY, EQUIPMENT AND CONTRACTUAL OBLIGATIONS.--

          A. On the effective date of this act, all functions, personnel, money, appropriations, records, furniture, equipment, supplies and other property of the New Mexico work and save board are transferred from the office of the state treasurer to the workforce solutions department for use by the New Mexico work and save board in carrying out its duties under the New Mexico Work and Save Act.

          B. On and after the effective date of this act, all contractual obligations of the New Mexico work and save board remain with, and are binding on, the New Mexico work and save board.

     SECTION 4. APPROPRIATION.--Two hundred fifty thousand dollars ($250,000) is appropriated from the general fund to the workforce solutions department for expenditure in fiscal year 2024 to fund two additional full-time-equivalent positions to administer the provisions of the New Mexico Work and Save Act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2024 shall revert to the general fund.

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